Break-Even Calculator
Find the sales volume where total revenue equals total costs.
Calculator
Break-even units
500
Break-even revenue
$25,000
Contribution margin
$20
What is break-even?
The break-even point is where total revenue equals total costs — no profit, no loss. Knowing it helps you price products and set sales targets.
Example
With $10,000 monthly fixed costs, $50 price per unit, and $30 variable cost per unit, the break-even point is 500 units per month.
Money-saving tips
- •Lower fixed costs to reduce your break-even point.
- •Raise prices or cut variable costs to improve margins.
- •Use break-even analysis before launching a new product.
Common mistakes
- •Forgetting to include all fixed costs like insurance and software.
Financial definitions
- Fixed costs
- Costs that do not change with production volume.
- Variable costs
- Costs that increase with each unit produced.
Frequently asked questions
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Estimated reading time: 5 min